Establishing secure connection…Loading editor…Preparing document…

Employment Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

EMPLOYMENT AGREEMENT

This Employment Agreement (the "Agreement") is made and entered into as of the day of , 20 by and between , (the "Employer") and (the "Employee").

WHEREAS, the Employer desires to secure and maintain the services of the Employee and the Employee desires to enter into an Agreement of employment with the Employer upon the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the premises and the mutual agreements hereinafter contained, the parties hereby agree as follows:

1. Employment and Duties: The Employer does hereby employ the Employee for a term of one year commencing and ending , unless her/his employment is sooner terminated or extended under the terms hereinafter set forth in the Agreement. The Employee hereby accepts such employment and shall devote her/his entire time and best efforts to the performance of her/his duties of who are clients of the Employer and such additional duties as the Employer may request from time to time. Employee shall work such hours as may be directed by Employer.

2. Compensation: The Employee shall receive as compensation for her/his services the sum of per hour (or per year) plus .

3. Termination: The employment of the Employee shall automatically terminate on her/his death or the bankruptcy or dissolution of the Employer. Otherwise, the Employer, with cause, may terminate the Employee's employment under this Agreement, without further notice for cause. Cause shall include the following:

(i) Failure of Employee to adequately perform her/his duties as set forth in this Agreement;

(ii) Commission of any felony, theft or act of dishonesty;

(iii) Illegal use or possession of drugs;

(iv) Falsification of employment or business records;

(v) Chemical dependency or any medical condition or injury which prevents Employee from performing her/his duties as provided in this Agreement for a period of one month;

(vi) Any act in material breach of this Agreement that remains uncorrected for days following notice from the Employer to cure such breach; or

(vii) Unethical business conduct.

In the event of a termination of the Employee, he/she shall be paid all compensation earned up to the date of termination.

4. Non-Competition: For and in consideration of the Employee's employment and the monies invested by the Employer in the training of the Employee, the parties agree that during the Employee's employment by the Employer and for year(s) thereafter within a mile radius of , the Employee shall not own, manage, operate or control, or participate in the ownership, management, operation or control of, or be connected with or have any interest in, as a stockholder, director, officer, employee, agent, consultant, partner or otherwise of a provider of services which is competitive with any business conducted by the Employer. If any of the provisions of this Paragraph 4 are held to be unenforceable because of the scope, duration or area of its applicability, the court making such determination shall have the power to modify such scope, duration or area or all of them, and such provision shall then be applicable in such modified form. This provision shall be of no force or effect if Employees employment is terminated within the first six (6) months after the date hereof.

5. Confidential Information: During the term of her/his employment and forever thereafter, the Employee shall hold in confidence all knowledge and information of a confidential nature with respect to the Employer including, but not limited to financial data, market data, customer/client lists and any and all other information related to the Employer and Employee shall not disclose, publish or make use of the same without the prior written consent of the Employer, except when necessary to comply with applicable law.

6. Notices: Any notice required or permitted to be given under this Agreement shall be sufficient if in writing, and if sent by registered mail to her/his residence in the case of the Employee or to the principal office in the case of the Employer.

7. Waiver of Breach: The waiver by any party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach thereof.

8. Binding Effect: This Agreement shall be binding upon the inure to the benefit of the successors and assigns of the Employer and the personal representative of the Employee.

9. Governing Law: This Agreement shall be governed by the laws of the State of .

10. Separability of Provisions: If one or more of the provisions of this Agreement or any application thereof shall be invalid, illegal, or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions thereof and any application thereof shall in no way be affected or impaired.

11. Entire Agreement: The foregoing contains the entire agreement of the parties and may not be altered, amended, or terminated except by an instrument in writing signed by the parties hereto.

12. This agreement and the employment of Employee shall be automatically extended beyond the term provided for herein if Employee continues in the employ of Employer beyond the date provided in paragraph 1 above. This extension shall be in effect regardless of increases or decreases in the compensation, benefits or duties as may from time to time occur without written modification of this agreement. This provision is intended to allow Employer and Employee to modify the compensation, benefits and duties without the necessity of a formal written agreement and yet preserve the enforceability of the other provisions of this agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

EMPLOYEE:

EMPLOYER:

Enter text✕

What an Employment Agreement Covers

An Employment Agreement is a legally binding contract between an employer and an employee that sets out the terms of employment, including duties, compensation, benefits, confidentiality, and termination conditions. It clarifies expectations for both parties, specifies the effective date and duration when applicable, and records any noncompetition, nondisclosure, or intellectual property assignment provisions. The agreement establishes the governing law and dispute resolution process and can be executed on paper or electronically where permitted by federal and state e-signature laws.

Why a Clear Employment Agreement Matters

A well-drafted Employment Agreement reduces ambiguity about roles, pay, and separation terms, protects confidential information and company IP, and provides a contractual basis to enforce obligations while helping manage workplace disputes and regulatory obligations.

Why a Clear Employment Agreement Matters

Who Typically Prepares and Signs This Agreement

Use profiles vary by organization size: small businesses often use standard templates, while larger employers involve legal and compliance teams for tailored agreements.

  • Hiring managers and HR teams who onboard new employees and maintain personnel records.
  • Company legal counsel who review clauses like noncompete and IP assignment for enforceability.
  • Individual employees or contractors who need written confirmation of job scope and compensation.

Primary Signatories and Their Roles

Employer Representative

Typically an authorized HR manager or corporate officer signs for the employer; this signer must have authority to bind the company and confirm pay, benefits, and any restrictive covenants.

Employee Signer

The employee or contractor signs to accept terms; the signature confirms acknowledgment of duties, compensation, confidentiality obligations, and the effective date of employment.

Essential Elements to Include

A comprehensive Employment Agreement contains several core sections. Each should be clear, measurable, and aligned with applicable law to reduce disputes and support enforcement.

Position and Duties

Describe the role, reporting relationships, primary responsibilities, location, and any conditions for relocation or travel so expectations are clear and performance obligations can be enforced.

Compensation Structure

State base salary or hourly rate, payment schedule, bonus eligibility, commission terms, and payroll deductions to avoid ambiguity and ensure compliance with wage laws.

Benefits and Time Off

Specify health insurance, retirement plan access, paid time off, leave policies, and any eligibility waiting periods to set employee expectations and administrative requirements.

Confidentiality and IP

Include nondisclosure, invention assignment, and ownership provisions for work product and trade secrets to protect employer intellectual property rights.

Term and Termination

Define at-will status or fixed term, termination notice requirements, cause definitions, severance obligations, and post-termination restrictions.

Dispute Resolution and Governing Law

Identify the governing state law, venue, and any arbitration or mediation clauses to reduce litigation uncertainty and specify legal processes.

Step-by-Step: Completing an Employment Agreement

Follow these core steps to prepare, review, and execute the agreement, whether on paper or electronically.

  • 01
    Draft Terms: Populate role, pay, benefits, start date, and termination terms.
  • 02
    Legal Review: Have counsel check restrictive covenants and compliance provisions.
  • 03
    Employee Review: Provide time for the employee to review and ask questions.
  • 04
    Execute and Store: Collect signatures, date the document, and retain a secure copy.

Configuring a Digital Signing Workflow

Set up the signing process to match your approval order, authentication needs, and record retention requirements.

Field Configuration
Template Name Standardize titles for reuse
Signing Order Sequential or parallel signer flow
Authentication Email, SMS code, or KBA
Retention Define retention duration and storage location

Where to Send or File the Signed Agreement

After execution, route copies to key parties and systems to ensure compliance and payroll processing.

  • Human Resources: Store a signed copy in the employee file for benefits and personnel records.
  • Payroll Department: Provide pay terms and start date to ensure correct payroll setup.
  • Legal Counsel: Retain a counsel-reviewed copy for enforcement and dispute response.
  • Document Repository: Archive PDF and metadata in secure records management systems.

Digital Signing and Integration Requirements

Ensure the vendor offers audit trails, role-based access, and, where needed, a BAA for HIPAA compliance.

  • Integrations: Salesforce, NetSuite, Microsoft 365 compatibility
  • File Formats: PDF, Word DOCX, and HTML support
  • Security: TLS 1.2/1.3 and AES-256 encryption

Common Legal Risks and Potential Penalties

Breach of Contract: Damages, injunctions, and litigation costs
I-9 Noncompliance: $281–$2,789 per violation
Tax Reporting Errors: Backup withholding or penalties for incorrect filings
Invalid Restrictive Covenants: Court refusal to enforce noncompete clauses
HIPAA Violations: Civil and monetary penalties for PHI mishandling
Data Breach Liability: Notification costs, fines, and reputational harm

Frequent Preparation Mistakes to Avoid

  • Inconsistent names or dates between agreement and payroll records that complicate tax reporting and enforceability.
  • Vague compensation or bonus terms that lead to disputes over eligibility and amounts owed.
  • Overbroad restrictive covenants that courts may find unenforceable and waste legal costs.
  • Failing to retain signed originals or an auditable electronic record for required retention periods.

Accuracy and Efficiency Tips

Apply consistent processes and document controls to reduce errors and speed onboarding.

Standardized Templates
Use reviewed templates for common roles to reduce drafting time, ensure legal compliance, and simplify updates across the organization.
Clear Definitions
Define key terms like 'cause', 'confidential information', and 'compensation' precisely to minimize interpretation disputes and litigation risk.
Version Control
Track changes and maintain an auditable record showing who approved and signed each version to support enforcement and compliance.
Consistent Storage
Store signed agreements in a secure repository with access controls and backup to meet retention and discovery obligations.

Real-World Examples

These short examples show how organizations use Employment Agreements to streamline hiring and protect assets.

Optica Ventures

The company standardized offer agreements for remote hires to reduce onboarding time by consolidating terms.

  • Quick adoption across HR teams reduced review cycles.
  • Optica retained signed records centrally to support payroll, compliance, and potential disputes without in-person signatures.

Martin Properties

A small real estate firm moved lease-related employment contracts online for agents.

  • Mobile signing enabled field execution.
  • The firm reported faster turnaround and consistent IP assignment language in contractor agreements, improving contract enforceability.

eSignature Vendor Pricing Snapshot

Comparison of starter pricing and common enterprise features across leading e-signature vendors; signNow is listed first for reference.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Security and Compliance Considerations

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Regulatory Standards: ESIGN and UETA compliance supported
HIPAA: BAA available for protected health information
Audit Trails: Detailed signing logs and timestamps
Access Controls: Role-based permissions and SSO options
Certifications: SOC 2 Type II and ISO 27001

Key Deadlines and Timing Expectations

Track the following timelines during hiring and post-execution to meet legal and administrative obligations.

Offer Acceptance Deadline:

Set a clear date for the employee to accept the offer

Effective Date:

The date employment and benefits begin as specified in the agreement

I-9 Completion:

Employer must complete verification within 3 business days of hire

Tax and Payroll Setup:

Provide W-4 details before first payroll run

Record Retention Start:

Retention periods typically begin on the effective or termination date

Frequently Asked Questions

Answers to common questions about enforceability, e-signatures, signatures authority, and recordkeeping for Employment Agreements.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users